Medical &Health

Covid job losses worse than 2008 recession

The Covid-19 pandemic has had a devastating impact on jobs worldwide, an impact worse than the 2008 recession, the International Labour Organization (ILO) has said.

Unemployment and reduced working hours, in fact, cost the world the equivalent of 255 million jobs in 2020, ILO said on Monday, noting that the “massive impact” was nearly four times the number lost during the 2008 global financial crisis.

According to the ‘ILO Monitor: Covid-19 and the World of Work’, the losses resulted in an 8.3 percent decline in global income, before factoring in support measures, equivalent to $3.7 trillion or 4.4 percent of global gross domestic product (GDP), reports UN News.

Recovery scenarios

While there is still a high degree of uncertainty for 2021, the ILO projected that most countries could see a relatively strong recovery in the second half the year, as Covid vaccination programmes take effect.

ILO put forward three scenarios: a baseline estimate showing a 3 percent decline; a pessimistic forecast indicating a 4.6 percent loss, and in the most optimistic scenario, a 1.3 percent decrease in working hours through this year.

“The signs of recovery we see are encouraging, but they are fragile and highly uncertain, and we must remember that no country or group can recover alone,” Guy Ryder, ILO Director-General, said.

“We are at a fork in the road. One path leads to an uneven, unsustainable, recovery with growing inequality and instability, and the prospect of more crises. The other focuses on a human-centred recovery for building back better, prioritiding employment, income and social protection, workers’ rights and social dialogue,” he added.

“If we want a lasting, sustainable and inclusive recovery, this is the path policy-makers must commit to.”

Women and children most vulnerable

In terms of sectors and groups, women were more affected than men, as were younger workers, ILO said.

“Globally, employment losses for women stand at 5 percent, versus 3.9 percent for men. In particular, women were much more likely than men to drop out of the labour market and become inactive,” it added.

Similarly, younger workers either lost jobs, dropped out of the labour force, or delayed entry into it.

‘Lost generation’ risk

“The employment loss among youth (15-24 years old) stood at 8.7 percent, compared to 3.7 percent for adults. This highlights the all too real risk of a lost generation” according to ILO.

Accommodation and food services was the worst hit sector, where the employment rate declined by over 20 percent, on average, followed by retail and manufacturing.

In contrast, the information, communication, finance and insurance sectors grew in the second and third quarters of 2020. Marginal increases were also seen in mining, quarrying and utilities.

Source: United News of Bangladesh